1. Anna’s Antiques expects to get two bidders for the unique china teacup it sells. Each of the bidders can either have a high-value of $100 or a low-value of $70 with equal probability. If Anna holds an auction between the two bidders, and both the bidders have low values, she would earn ___ from the auction. a.​$70 b.​$100 c.​Just above $100 d.​Just above $70

QUESTION 2

1. ​ To attract more bidders, and more aggressive bidders, to your common-value auction a.​do not allow potential bidders to examine the object too closely b.​allow bidders to know how others are bidding c.​do not hold oral auctions d.​withhold relevant information about the value of the object

QUESTION 3

1. ​ In a sealed-bid first price auction, if you notice that your competition is stronger, you should a.​Shade your bid more b.​Shade your bid less c.​Bid more aggressively d.​Both B&C

QUESTION 4

1. ​ Anna’s Antiques expects to get two bidders for the unique china teacup it sells. Each of the bidders can either have a high-value of $100 or a low-value of $70 with equal probability. If Anna holds an auction between the two customers, the expected value of this auction is a.​$85 b.​$70 c.​$78 d.​$100

QUESTION 5

1. ​ Economists love auctions because a.​They maximize consumer surplus b.​They create efficiency by allotting the item to the highest-value bidder c.​They create efficiency by allotting the item to the lowest value bidder d.​All of the above